Abril Paper Tech's first year as a public company ends with a cash-flow crunch.
Full-year profit grew 6.3% to ₹1.50 crore, but the second half told a different story as revenue nearly halved and operating cash flow swung sharply negative.
— 1 earlier story on Abril Paper Tech Ltd. →What's new
- Abril Paper Tech's H2 revenue fell 29% from H1 to ₹27.05 cr; profit dropped 60% to ₹0.43 cr.
- Operating cash flow turned negative at -₹7.60 cr, reversing any H1 cash generation.
- The company completed its IPO during the year, issuing 22 lakh shares at ₹61 each.
Why this matters
For a company fresh off an IPO, the sharp second-half reversal and negative cash flow are red flags. The H1-to-H2 deterioration suggests the full-year growth number masks a material slowdown in business momentum.
What we're watching
- Whether the cash flow stress persists into Q1 FY27 or is a one-time working capital event.
- Management commentary on the reason for the H2 revenue and profit drop.
- How the IPO cash is being deployed against the rising receivables and advances.
The full read
Abril Paper Tech's first full year after its IPO showed 6.8% revenue growth to ₹65.08 crore and a 6.3% profit increase to ₹1.50 crore. The full-year numbers, however, mask a stark second-half slump. H2 revenue fell 29% from H1 to ₹27.05 crore, while profit collapsed 60% to ₹0.43 crore. The more alarming figure is operating cash flow, which swung to -₹7.60 crore from positive territory. The company cited higher receivables and a surge in short-term loans and advances as the cause. For a nano-cap with a ₹30 crore market capitalisation, tying up cash this way in a year it also raised capital through a 22 lakh-share IPO at ₹61 per share raises immediate questions about capital allocation.
Questions answered
- How did Abril Paper Tech's performance differ between the first and second halves of FY26?
- The company generated ₹38.03 crore in revenue and ₹1.07 crore in net profit in H1. In H2, revenue fell 29% to ₹27.05 crore and profit dropped 60% to just ₹0.43 crore.
- What caused the operating cash flow to turn negative?
- The negative operating cash flow of -₹7.60 crore was driven by a large increase in short-term loans and advances and higher receivables, indicating cash was tied up in working capital.
- What was the significance of the share issuance during the year?
- The company completed its IPO, issuing 22 lakh new equity shares at ₹61 per share to boost its equity base. This was a public market debut for the nano-cap firm.
Story so far
All notes on APTL →- 25 May 2026 · 7:22 PM IST Abril Paper Tech's first year as a public company ends with a cash-flow crunch.
- 42d ago Abril Paper Tech's full-year profit grows 6% but cash flow turns negative